After the 2023 banking crisis—when several well-known banks collapsed and everyday people worried about their money being safe—there’s been a big shift in how financial institutions think about one key question: What do we do when money suddenly runs short?
At the center of this conversation is Padmini Rajendra Bulani, a financial risk expert who has spent her career helping global banks prepare for exactly these kinds of emergencies. Her work focuses on liquidity risk—which is a fancy way of asking, “Can a bank quickly get the cash it needs to pay people back, even in a crisis?”
Why Contingency Funding Plans Matter
One of Padmini’s biggest contributions has been in developing what’s known as a Contingency Funding Plan (CFP). Think of it like a financial emergency plan. Just like families might keep savings or emergency contacts for a crisis, banks need a clear, tested plan to get quick access to money if things go wrong.
These plans help banks figure out:
- Where they can get emergency funds quickly
- What assets (like bonds or securities) they can sell
- How to communicate with regulators and senior management when things start to go off-track
The problem? Before 2023, many banks had basic plans, but they were often too theoretical or outdated. Some didn’t act fast enough, and when customers started pulling their money out, there wasn’t time to respond. Padmini’s work has helped change that.
Making Emergency Plans Stronger—and Smarter
Padmini helped redesign how these emergency funding plans are built and tested. She made sure banks were:
- Planning for real-world situations (not just ideal ones)
- Regularly updating their plans as the economy changed
- Setting clear warning signs to act before it’s too late
She also pushed for better tools that give banks real-time updates on their cash situation. That means they don’t have to wait for a monthly report to know if there’s a problem—they can see and act right away.
Helping Banks Stay Ahead of the Rules
Since the 2023 crisis, financial regulators around the world—including those in the U.S. and Europe—have been asking banks to do more to protect themselves and their customers. Padmini’s ideas and methods have helped banks not only meet these new expectations but often exceed them.
She’s also worked with teams across departments—finance, risk, and leadership—ensuring that everyone is on the same page when quick decisions are needed.
Looking to the Future
What sets Padmini apart isn’t just how she improves current plans—it’s how she’s thinking ahead. She’s helping banks prepare for new kinds of risks, including those tied to the environment and climate change. As the world becomes more unpredictable, she’s making sure financial systems stay stable.
Her work reminds us that strong financial systems aren’t built in times of crisis—they’re built in times of calm, by people who know what to look for before anything breaks.
Through her proactive contributions and deep expertise, Padmini R. Bulani is not only helping banks survive crises—but preparing them to weather the next one before it begins.
